Social Security refers to the Old-Age, Survivors, and Disability Insurance (OASDI) United States retirement program along with the original Social Security Act of 1935 and later amendments. Social Security benefits are the largest source of retirement income for many retirees, but many people don't know when they should begin taking the benefits and often start taking them too soon. Under current laws, each person can begin taking Social Security benefits starting at either age 62 or 62 and one month depending upon the day of month that person was born. However, because monthly Social Security benefits increase with claiming age (currently up to age 70), delaying benefits may be advantageous in many circumstances.
To help retirees decide when it is best to start Social Security benefits, financial advisors and other experts often suggest one or more claiming strategies based on a person's unique situation. As used herein, “claiming strategy” refers to a plan, decision, strategy, etc. as to when a single person should begin taking his or her Social Security benefits or when each partner of a couple should begin taking their own benefits and spousal benefits, when available.
The best claiming strategy depend on a number of interrelated factors, including each person's need for income, marital status, current age, health considerations, other retirement income sources, and expected life expectancy. Many couples (married spouses and other eligible partners) may even benefit from coordinated claiming strategies in which the partners start taking benefits at different times. For example, it may be beneficial for one partner to delay taking benefits as long as possible, while the other partner begins taking benefits earlier. This is because each partner may be eligible for their own benefits based on his or her earnings record and spousal and survivor benefits based on their spouse's earnings record. Thus, the best time for one spouse to claim his or her own retirement benefits can be affected by his or her partner's life expectancy.